[ad_1]
Hollywood film and TV writers, represented by the Writers Guild of America (WGA), are on strike starting Tuesday after failing to reach agreements with studios and streaming companies including Walt Disney on higher pay and other issues.NYSE: DIS) and Netflix (NASDAQ: NFLX). The strike comes as writers and the entertainment industry are reeling from drastic changes sparked by the streaming TV boom.
It marked the first strike in 15 years for the WGA, which represents about 11,500 members. The previous strikes, in 2007 and 2008, cost the California economy an estimated $2.1 billion due to severe disruptions to production.The strike is expected to affect live TV programming first, including late-night shows such as jimmy kimmel live and The Tonight Show with Jimmy Fallon, followed by streaming production. Theatrical films will be the last to feel the impact due to the long lead times involved.
Alliance of Motion Picture and Television Producers (AMPTP), representing Walt Disney, Netflix, Paramount (for), apple(NASA), Warner Bros. Discovery (world bank day), NBCUniversal [owned by Comcast (CMCSA)]Sony (sony) and others argue that it already offers “generous” raises. However, the WGA said the studio’s response to its request was insufficient, keeping in mind the “existential crisis faced by writers”.
The AMPTP primarily has issues with certain proposals, including requiring “a certain number of writers on a show for a certain period of time, whether required or not.”
Streaming giant Netflix may not face any immediate fallout, says company co-CEO Ted Sarandos During the first quarter income call. Sarandos assured that if a strike occurs, the company has a slew of upcoming shows and movies that “could” help it serve audiences better than most of its competitors. After investing billions of dollars in content and operations, Netflix and its peers are already under pressure to make the streaming business profitable. A strike on a macro challenge could make things worse.
Is Netflix a buy, sell or hold?
The Street’s Moderate Buy consensus rating on Netflix is ​​based on 18 Buys, 13 Holds, and two Sells. The $368.60 average price target suggests an upside of nearly 14%.
[ad_2]
Source link